China's Factory Output Is Starting To Pick Up

While the overall reading remained below 50 which signals contraction, the change in direction is a positive sign. Employment however contracted at a faster rate in July. With low inflation Beijing does have room to support growth.

But this is unlikely to result in a massive stimulus since Beijing is more concerned with employment growth than GDP growth, and China doesn't need that much growth for job creation.

A summary of the report shows that output expanded, while new orders and new export orders contracted but at a slower rate.